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Dhillon Freight Carrier Ltd.

Dhillon Freight Carrier Ltd.

DHILLONSME

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Overview

Dhillon Freight Carrier Limited, established in 2014, is an ISO 9001:2015 certified logistics solutions provider specializing in road transportation. The company offers a range of services including Parcel/Less than Truck-Load (LTL), Contract Logistics, and Fleet Rental services to a diverse B2B and B2C clientele. Operating with an in-house fleet of 62 vehicles, its primary network covers West Bengal, Bihar, Delhi, and Uttar Pradesh, supported by 22 booking and delivery offices.

Opening Date

Sep 29, 2025

Closing Date

Oct 01, 2025

Listing Date

Oct 07, 2025

IPO Type

SME

IPO Status

Closed

Issue Size

10.08 Cr

Fresh Issue

10.08 Cr

Offer for Sale

Price Band

₹72 - ₹72

Lot Size

1600

IPO Timeline

Sep 29, 2025
Open Date
Oct 01, 2025
Close Date
Oct 03, 2025
Allotment Date
Oct 06, 2025
Initiation of Refunds
Oct 07, 2025
Listing Date

Financials

Revenue

Profit After Tax (PAT)

IPO Objective

The main objectives of the issue are to utilize the funds raised towards the following purposes:

  • Purchase of 24 new goods transportation vehicles (TATA LPT 2823-68-COWL-32 FT) and their fabrication to reduce dependency on hired services, improve cost control and margin, and enhance operational efficiency and delivery timeliness.

  • Funding general corporate purposes which include strategic initiatives, brand building, marketing activities, meeting operating expenses, repayment of borrowings, and strengthening business development capabilities.

  • Meeting the expenses related to the Initial Public Offer, including fees for issue management, underwriting, legal advisory, and marketing.

Key Performance Indicator

P/E Ratio

EPS

ROE

39.65%

ROCE

31.77%

RONW

33.09%

Debt to Equity Ratio

0.64

PAT Margin

6.99%

EBITDA Margin

14.84%

P/B

3.47

SWOT Analysis

Strengths

  • Adopting electric vehicles (EVs) demonstrates the company's commitment to sustainability, reducing its carbon footprint and attracting environmentally conscious clients.

  • The company offers a wide range of logistics solutions, including Parcel/LTL, Contract Logistics, and Fleet Rental services, which reduces revenue vulnerability.

  • The transition to fuel-efficient vehicles has reduced operating costs, providing a competitive edge in cost-sensitive markets while enhancing profitability.

  • With a presence in key states like West Bengal, Bihar, Delhi and Uttar Pradesh, the company ensures faster deliveries and deeper regional market penetration.

Weaknesses

  • Relying on outsourced vehicles introduces variability in quality and costs, which could become a bottleneck when scaling operations or during peak demand.

  • The company operates efficiently but lacks the strong brand presence of larger competitors, limiting its ability to charge premium prices or expand aggressively.

  • A trademark application objection creates uncertainty, and delays in obtaining necessary regulatory approvals could impact customer trust and operational stability.

  • The company operates in a highly competitive and fragmented industry, and its geographical coverage remains limited compared to national competitors.

Opportunities

  • India's logistics sector is poised for significant growth, driven by rising consumer demand, e-commerce adoption, and government initiatives like GST.

  • Adopting EVs and CNG vehicles aligns with India's clean energy goals, positioning the company to attract sustainability-focused clients.

  • Using IPO funds for fleet expansion and geographic diversification will reduce reliance on third-party vendors, offering greater control over costs and service quality.

  • Government support initiatives like Gati Shakti and infrastructure development present additional growth opportunities for the logistics sector.

Threats

  • The logistics sector is dominated by major players with advanced technological infrastructure and economies of scale, making it challenging to compete on cost and speed.

  • The company's revenue is closely tied to its clients' industries, meaning economic downturns or inflation could lead to a significant decline in demand for logistics services.

  • The logistics industry faces stringent regulations, including emission standards, transport laws, and labor policies, which can increase operational complexity and costs.

Subscription Rate

CategoryShares Bid ForShares OfferedTimes Subscribed
Non-Institutional Investors75.20 K6.66 L0.11x
Retail Individual Investors3.58 L6.64 L0.54x
Total4.34 L13.30 L0.33x